Final answer:
When a dividend is issued to an ADR holder, it means that the company has declared a portion of its profits to be distributed among the ADR holders. ADR holders will receive their dividend payment in the form of cash or additional ADRs, depending on the company's policies.
Step-by-step explanation:
When a dividend is issued to an ADR holder, it means that the company has declared a portion of its profits to be distributed among the ADR holders. A dividend is a payment made by the company to its shareholders as a reward for holding shares of the company. ADR holders will receive their dividend payment in the form of cash or additional ADRs, depending on the company's policies.